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SEGMENT INFORMATION
 6 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(N) SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities that earn revenues, incur expenses and prepare separate financial information that is evaluated regularly by our chief operating decision maker in order to allocate resources and assess performance.

We operate in five business segments: Cement, Gypsum Wallboard, Recycled Paperboard, Oil and Gas Proppants and Concrete and Aggregates. These operations are conducted in the U.S. and include the mining of limestone and the manufacture, production, distribution and sale of Portland cement (a basic construction material which is the essential binding ingredient in concrete), the mining of gypsum and the manufacture and sale of gypsum wallboard, the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters, the sale of readymix concrete and the mining and sale of aggregates (crushed stone, sand and gravel) and sand used in hydraulic fracturing (“frac sand”). The products that we manufacture, distribute and sell are basic materials used with broad application as construction products, building materials, and basic materials used for oil and natural gas extraction.  Our construction products are used in residential, industrial, commercial and infrastructure construction and include cement, concrete and aggregates.  Our building materials are sold into similar markets and include gypsum wallboard.  Our basic materials used for oil and natural gas extraction include frac sand and oil well cement.

We operate six cement plants, one slag grinding facility, sixteen cement distribution terminals, five gypsum wallboard plants, including the plant idled in Bernalillo, N.M., a gypsum wallboard distribution center, a recycled paperboard mill, seventeen readymix concrete batch plant locations, three aggregates processing plant locations, three frac sand processing facilities, three frac sand drying facilities and six frac sand trans-load locations. The principal markets for our cement products are Texas, northern Illinois (including Chicago), the central plains, the Rocky Mountains, northern Nevada, and northern California. Gypsum wallboard and recycled paperboard are distributed throughout the continental U.S, with the exception of the northeast. Concrete and aggregates are sold to local readymix producers and paving contractors in the Austin, Texas area, north of Sacramento, California and the greater Kansas City, Missouri area, while frac sand is currently sold into shale deposit zones across the United States.   During July 2015, we completed the Skyway Acquisition, which is operated by Illinois Cement Company, and its operations are included in the Cement segment.

We conduct one of our six cement plant operations, Texas Lehigh Cement Company LP in Buda, Texas, through a Joint Venture. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture’s revenues and operating earnings, which is consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

We account for intersegment sales at market prices. The following table sets forth certain financial information relating to our operations by segment:

 

 

 

For the Three Months

 

 

For the Six Months

 

 

 

Ended September 30,

 

 

Ended September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenues -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

164,790

 

 

$

145,861

 

 

$

292,966

 

 

$

273,797

 

Gypsum Wallboard

 

 

119,701

 

 

 

111,655

 

 

 

234,753

 

 

 

224,332

 

Paperboard

 

 

39,145

 

 

 

35,579

 

 

 

74,463

 

 

 

73,058

 

Oil and Gas Proppants

 

 

18,307

 

 

 

10,414

 

 

 

41,132

 

 

 

21,594

 

Concrete and Aggregates

 

 

36,671

 

 

 

31,961

 

 

 

65,203

 

 

 

58,123

 

Sub-total

 

 

378,614

 

 

 

335,470

 

 

 

708,517

 

 

 

650,904

 

Less: Intersegment Revenues

 

 

(20,090

)

 

 

(17,523

)

 

 

(38,019

)

 

 

(34,128

)

Net Revenues, including Joint Venture

 

 

358,524

 

 

 

317,947

 

 

 

670,498

 

 

 

616,776

 

Less: Joint Venture

 

 

(29,536

)

 

 

(33,139

)

 

 

(56,547

)

 

 

(65,717

)

Net Revenues

 

$

328,988

 

 

$

284,808

 

 

$

613,951

 

 

$

551,059

 

 

 

 

For the Three Months

 

 

For the Six Months

 

 

 

Ended September 30,

 

 

Ended September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Intersegment Revenues -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

4,232

 

 

$

2,911

 

 

$

7,358

 

 

$

5,271

 

Paperboard

 

 

15,596

 

 

 

14,324

 

 

 

30,147

 

 

 

28,340

 

Concrete and Aggregates

 

 

262

 

 

 

288

 

 

 

514

 

 

 

517

 

 

 

$

20,090

 

 

$

17,523

 

 

$

38,019

 

 

$

34,128

 

Cement Sales Volume (in thousands of tons) -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly –owned Operations

 

 

1,248

 

 

 

1,193

 

 

 

2,239

 

 

 

2,200

 

Joint Venture

 

 

236

 

 

 

283

 

 

 

448

 

 

 

567

 

 

 

 

1,484

 

 

 

1,476

 

 

 

2,687

 

 

 

2,767

 


 

 

 

For the Three Months

 

 

For the Six Months

 

 

 

Ended September 30,

 

 

Ended September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Operating Earnings -

 

 

 

 

 

 

 

 

Cement

 

$

48,577

 

 

$

38,450

 

 

$

74,290

 

 

$

58,957

 

Gypsum Wallboard

 

 

40,002

 

 

 

37,002

 

 

 

80,896

 

 

 

74,430

 

Paperboard

 

 

8,138

 

 

 

7,984

 

 

 

14,168

 

 

 

15,531

 

Oil and Gas Proppants

 

 

(44,600

)

 

 

711

 

 

 

(50,236

)

 

 

74

 

Concrete and Aggregates

 

 

3,857

 

 

 

2,965

 

 

 

5,783

 

 

 

4,321

 

Other, net

 

 

572

 

 

 

883

 

 

 

1,007

 

 

 

1,562

 

Sub-total

 

 

56,546

 

 

 

87,995

 

 

 

125,908

 

 

 

154,875

 

Corporate General and Administrative

 

 

(9,364

)

 

 

(7,414

)

 

 

(18,355

)

 

 

(14,456

)

Acquisition and Litigation Expense

 

 

-

 

 

 

(2,103

)

 

 

-

 

 

 

(2,103

)

Earnings Before Interest and Income Taxes

 

 

47,182

 

 

 

78,478

 

 

 

107,553

 

 

 

138,316

 

Interest Expense, net

 

 

(4,342

)

 

 

(3,901

)

 

 

(8,828

)

 

 

(7,953

)

Earnings Before Income Taxes

 

$

42,840

 

 

$

74,577

 

 

$

98,725

 

 

$

130,363

 

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly–owned Operations

 

$

36,897

 

 

$

26,399

 

 

$

54,780

 

 

$

37,106

 

Joint Venture

 

 

11,680

 

 

 

12,051

 

 

 

19,510

 

 

 

21,851

 

 

 

$

48,577

 

 

$

38,450

 

 

$

74,290

 

 

$

58,957

 

 

Capital Expenditures -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

5,349

 

 

$

4,176

 

 

$

13,499

 

 

$

12,996

 

Gypsum Wallboard

 

 

203

 

 

 

1,558

 

 

 

1,700

 

 

 

3,793

 

Paperboard

 

 

2,424

 

 

 

823

 

 

 

3,268

 

 

 

1,149

 

Oil and Gas Proppants

 

 

16,744

 

 

 

6,000

 

 

 

32,711

 

 

 

13,602

 

Concrete and Aggregates

 

 

4,027

 

 

 

4,219

 

 

 

4,691

 

 

 

8,349

 

Other

 

 

-

 

 

 

82

 

 

 

-

 

 

 

150

 

 

 

$

28,747

 

 

$

16,858

 

 

$

55,869

 

 

$

40,039

 

 

Depreciation, Depletion and Amortization -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

8,629

 

 

$

7,987

 

 

$

16,495

 

 

$

15,870

 

Gypsum Wallboard

 

 

4,819

 

 

 

5,031

 

 

 

9,605

 

 

 

10,129

 

Paperboard

 

 

2,063

 

 

 

2,058

 

 

 

4,116

 

 

 

4,127

 

Oil and Gas Proppants

 

 

7,205

 

 

 

684

 

 

 

14,764

 

 

 

1,253

 

Concrete and Aggregates

 

 

1,565

 

 

 

1,369

 

 

 

3,070

 

 

 

2,593

 

Other, net

 

 

489

 

 

 

445

 

 

 

984

 

 

 

892

 

 

 

$

24,770

 

 

$

17,574

 

 

$

49,034

 

 

$

34,864

 

 

 

 

As of

 

 

 

September 30,
2015

 

 

March 31,
2015

 

 

 

(dollars in thousands)

 

Identifiable Assets -

 

 

 

 

 

 

 

 

Cement

 

$

836,927

 

 

$

777,956

 

Gypsum Wallboard

 

 

393,602

 

 

 

403,279

 

Paperboard

 

 

126,497

 

 

 

123,519

 

Oil and Gas Proppants

 

 

434,093

 

 

 

455,572

 

Concrete and Aggregates

 

 

109,154

 

 

 

96,610

 

Corporate and Other

 

 

19,977

 

 

 

25,655

 

 

 

$

1,920,250

 

 

$

1,882,591

 

 

Segment operating earnings, including the proportionately consolidated 50% interest in the revenues and expenses of the Joint Venture, represent revenues, less direct operating expenses, segment depreciation, and segment selling, general and administrative expenses. Corporate assets consist primarily of cash and cash equivalents, general office assets, miscellaneous other assets and unrecognized tax benefits. The segment breakdown of goodwill is as follows:

 

 

 

As of

 

 

 

September 30,

 

 

March 31,

 

 

 

2015

 

 

2015

 

 

 

(dollars in thousands)

 

Cement

 

$

9,729

 

 

$

8,359

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

133,885

 

 

$

132,515

 

 

Summarized financial information for the Joint Venture that is not consolidated is set out below (this summarized financial information includes the total amount for the Joint Venture and not our 50% interest in those amounts):

 

 

 

For the Three Months
Ended September 30,

 

 

For the Six Months
Ended September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenues

 

$

59,071

 

 

$

66,278

 

 

$

113,094

 

 

$

131,434

 

Gross Margin

 

$

25,193

 

 

$

25,369

 

 

$

42,204

 

 

$

45,827

 

Earnings Before Income Taxes

 

$

23,360

 

 

$

24,102

 

 

$

39,020

 

 

$

43,702

 

 

 

 

As of

 

 

 

September 30,
2015

 

 

March 31,
2015

 

 

 

(dollars in thousands)

 

Current Assets

 

$

74,991

 

 

$

68,399

 

Non-Current Assets

 

$

42,154

 

 

$

42,765

 

Current Liabilities

 

$

20,958

 

 

$

19,723